Matt Taibbi Sticks A Fork In Eric Holder

Guy should be in jail for this shit. Taibbi of The Rolling Stone is becoming one of the best to shed light on the housing collapse, the bankers fucking us in the ass etc

http://www.nakedcapitalism.com/2014/11/taibbi-ex-jp-morgan-lawyer-smoking-gun-mortgage-fraud-stymied-holder-cover.html Phone Post 3.0

Matt Taibbi has pulled the curtain back on an offensive and obvious bit of Obama administration bank cronyism that disappeared too quickly from public attention. Earlier this year, JP Morgan settlement negotiations over mortgage misconduct had broken down over price. When word got out that the Department of Justice had a criminal suit that it was ready to file, Jamie Dimon called the DoJ and went to Washington to negotiate a deal. Let us turn the mike over to Georgetown law professor Adam Levitin who wrote at the time: Phone Post 3.0

I’m floored that Attorney General Eric Holder was willing to take a private meeting with JPMorgan Chase CEO Jaimie Dimon while the bank is under criminal investigation and negotiating an enormous civil (and possibly criminal) settlement. I can’t recall something like this meeting happening before. There’s not anything illegal about such a meeting, but the optics are really bad and underscore the privileged position of the too-big-to-fail banks…

Who else is able to call up the AG and just get a meeting like that when their firm is under criminal investigation? Do other citizens get talk things through mano-a-mano with the AG himself? That Dimon even thought to initiate direct contact with Holder suggests that he has no sense of his place in society–or perhaps that he in fact does. Bottom line is that Dimon (and JPM) shouldn’t get any more special treatment than any other citizen, but it sure looks like he did. Phone Post 3.0

But the whole point was to get special treatment. The criminal case went on hold. The settlement was structured to avoid court approval. Taibbi does not mention that the Administration acted as if it had really gotten a great deal by getting what looked like a really big dollar amount, but that was achieved via sleight of hand. The total was goosed up via throwing in a boatload of other claims, the biggest of which was Fannie/Freddie putback claims that constituted $4 billion of the $9 billion in total cash value of the deal. Holder took credit for that, when in fact that suit was launched by the much-pilloried Ed DeMarco of the FHFA (Taibbi correctly points out that the $4 billion of “consumer relief” that brought the headline total to $13 billion was show for the rubes). And JP Morgan admitted to pretty much nothing.

We now learn from Taibbi’s story that a whistleblower, Alayne Fleischmann, a securities lawyer who’d been hired by JP Morgan to help supervise the review of mortgages that were sold into securitizations. Shortly after she joined, the bank brought in a new manager for “diligence” who was technically senior to her. He focused on getting product out the door, no matter how toxic it was, browbeat managers who rejected clearly misrepresented loans, and implemented a “no email” policy to cover up what he was up to. Phone Post 3.0

The centerpiece of the story is a package of particularly noxious mortgages from an originator called Greepoint. Their age alone made them suspect: they were unsecuritized after seven plus months, which meant they’d either already defaulted or had been rejected by another securitizer. One sample had 40% had overstated incomes, and 33% had incomes that were simply not plausible given the supposed employment of the borrower.

Fleischmann jumped ranks and spoke to a JP Morgan managing director, Greg Boester, and told him that selling these loans into securities would amount to fraud. Fleischmann was ignored. Boester is now at JP Morgan, after doing a brief stint at Citadel.

And here is the smoking gun: Phone Post 3.0

A few weeks later, in early 2007, she sent a long letter to another managing director, William Buell. In the letter, she warned Buell of the consequences of reselling these bad loans as securities and gave detailed descriptions of breakdowns in Chase’s diligence process.

Fleischmann assumed this letter, which Chase lawyers would later jokingly nickname “The Howler” after the screaming missive from the Harry Potter books, would be enough to force the bank to stop selling the bad loans. “It used to be if you wrote a memo, they had to stop, because now there’s proof that they knew what they were doing,” she says. “But when the Justice Department doesn’t do anything, that stops being a deterrent. I just didn’t know that at the time.” Phone Post 3.0

papasmurf24 -


http://www.rollingstone.com/politics/news/the-9-billion-witness-20141106



 



read the article this morning, unfucking believeable.  Rivals the story about the 46 hours of recordings by an ex Goldman lawyer.

Yeah, fucking unbelievable is an understatement. Thanks fir posting the link to the original article dude....i am having a fuck of a time posting articles on the app. Phone Post 3.0

I have said this for a long time...,capitalism is great but crony capitalism fucking sucks. Phone Post 3.0

Holder is nothing more then a racist scumbag who should have been fired and jailed a while ago.

Dimon has always been a pretty big Obama supporter, hasn't he? As if we needed more evidence that this has become a nation of rulers instead of laws.

Taibi has been knocking it out of the fucking park with these articles. If you haven't read his work i would recommend going back and reading everything he has written fir Rolling Stone. Phone Post 3.0

Taibbi is a boss! His article on Mitt Romney and his time at bane capital pretty much sealed the coffin on the election for Mitt. Phone Post 3.0

I'm surprised Matt Taibbi hasn't died in a "car accident" yet Phone Post 3.0

for later

RubberFistofFury - I'm surprised Matt Taibbi hasn't died in a "car accident" yet Phone Post 3.0


He might have to much to drink this weekend.



 



I'm surised that RS printed it

Corporate fascism at its finest. Phone Post 3.0

BlackJesus -
RubberFistofFury - I'm surprised Matt Taibbi hasn't died in a "car accident" yet Phone Post 3.0


He might have to much to drink this weekend.



 



I'm surised that RS printed it

They have printed all his shit and his earlier pieces were just as harsh. Phone Post 3.0

In

this corporatism is the number one issue facing the country, not ISIS, not gay marriage not weed legalization.

not a single person went to jail for 2008 and the fines levied on wall street were a small fraction of the amount they stole from the American ppl.


It's crazy to me that Holder has kid gloves on with the institutions of real white power in this country while doing everything in his power to shit on poor and middle class whites.


ttt